World Bank okays funds for low cost housing finance project

ISLAMABAD: The World Bank has approved US$435 million in financing for three projects including the low-cost housing scheme of Pakistan Housing Finance project, ARY NEWS reported.

The announcement was made by the World Bank’s country director Najy Benhassine, who shared the details from his Twitter handle saying that the financing would improve property rights and increase access to affordable housing and mortgage finance for low-income households.

According to details, the World Bank’s Board of Executive Directors approved US$435 million in financing for three projects including the Pakistan Housing Finance project, the Punjab Urban Land Systems Enhancement project and the Punjab Affordable Housing Program.

NEWS: @WorldBank today approved 3 projects in #Pakistan to improve property rights and increase access to affordable #Housing & mortgage finance for low-income households. ➡️ https://t.co/ig213ct09S pic.twitter.com/bCvBX8gPSm

— Najy Benhassine (@WBPakistanCD) March 11, 2022

These projects will expand access to housing finance, particularly for low-income households, improve land tenure rights and facilitate affordable housing developments in urban Punjab.

It shared that the US$85 million additional financing for the Pakistan Housing Finance Project will help expand access to affordable mortgages to increase homeownership among low-income households, including women and informal workers.

“This will benefit up to 70,000 first-time homebuyers in the country, who qualify for the government’s interest rate subsidy program – Mera Pakistan, Mera Ghar (My Pakistan, My Home).”

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The US$150 million Punjab Urban Land Systems Enhancement Project will strengthen land administration and facilitate housing authorities’ efforts to identify suitable areas and public lands for affordable housing developments in the Punjab province.

Moreover, the $200 million Punjab Affordable Housing Program will increase the availability of affordable housing, particularly for low-income households in the province.